Wheels come off as Peloton loses £81m
THE UK arm of luxury exercise bike group Peloton racked up an £81million loss months before the firm went into crisis last November.
Peloton’s bikes and workouts – with fans including Prime Minister Rishi Sunak and tennis star Venus Williams – exploded in popularity during the pandemic due to Covid restrictions and gym closures.
The US company offers a subscription service that allows users worldwide to join online classes and has signed deals with stars including singer Beyonce.
But the firm – with bike prices starting at £1,350 – struggled to maintain the momentum once lockdowns lifted.
Documents filed at Companies House reveal that Peloton Interactive UK saw revenues nearly triple to £147million in the year to June 2021. But costs, including a ramp-up in marketing, resulted in a loss of £81million, compared with a £50million loss in the previous year.
The loss came months before a profit warning from its US-listed parent company last November made the share price nosedive. Peloton has since sacked staff and slashed costs.
In February, founder John Foley quit as chief executive and was replaced by Barry McCarthy, formerly the finance boss of Netflix and Spotify.
In May 2021, Peloton recalled all of its treadmills in the US and the UK after a child died when he was dragged under one of the machines.
Shares have plunged almost 80 per cent this year, leaving the firm worth around £2.3 billion.